CmaBoardReleases
Title: Announcement Regarding Issuance of Disciplinary Board Resolution
The Capital Markets Authority announces issuance of a Disciplinary Board Resolution passed in its meeting held on Wednesday 20/09/2017 on violation No. (53/2017 Disciplinary Board) (132/2017 Authority) filed against:
KFH Capital Investment Company
The Company shall pay KWD 2000 for each of the two violations. It only performed one valuation instead of two independent valuations for its real estate.
This punishment is due to violating the following:
1- The provision of paragraph (c) of clause (1) of Appendix (1) “Real Estate Asset Valuation” of Module Eleven (Dealing in Securities) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. It valuated a real estate for trading “Dasman Land” – a local land – owned by KFH Takaful Insurance Company, which is its subsidiary, in the percentage of 3.5% by only one valuator.
2- The provision of paragraph (c) of clause (2) of Apendix (1) “Real Estate Asset Valuation” of Module Eleven (Dealing in Securities) of the Executive Bylaws of Law No. 7 of 2010 and their amendments. It valuated a real estate in the United States of America (Innovation Center & Boca Barcel Project) owned by a subsidiary company, which is Florida Boca/Deerfield & De Park” by one valuator only.
In this regard, the CMA emphasizes the implementation of CMA Law and its Executive Bylaws on all persons dealing in securities activities, and urges them to comply with these rules in order to promote investors' confidence, create a sound investment environment, and implement the Law according to the principles of fairness, transparency, and integrity in line with the best international practice.